https://dailyreckoning.com/chinas-plan-to-tank-their-own-stock-market/
From the article:
"Here’s an easy metaphor that captures Chinese behavior: Imagine you’re on the admissions committee at an exclusive club. Your club has a strict dress code that involves jackets, ties and leather shoes even on casual occasions.
A new potential member has applied. They go through the interview process, bring recommendations are informed about the dress code and agree to strict adherence. The new member is admitted. The next day the new member shows up at the bar in cutoffs, flip-flops and a T-shirt.
Your club has a problem.
China’s the same way. They go through rigorous vetting. The organization rules and procedures are carefully explained. China agrees to play by the rules and is formally admitted. The next day, China proceeds to break every rule in the book and, in effect, dares the leadership to sanction them. The sanctions never arrive.
The group has a problem.
From this perspective, the trade war did not begin in 2018; it began in 2001. It was not started by President Trump; it was started by China through rule breaking, theft of intellectual property, export dumping and slow-rolling open markets.
When China joined the WTO, its trade surplus with the U.S. was about $100 billion per year. Today China’s trade surplus with the U.S. is about $400 billion per year and rising. This surplus is in addition to the theft of over $600 billion of intellectual property. The 17-year wealth transfer from the U.S. to China now exceeds $3 trillion.
Viewed this way, Trump’s 2018 tariffs on China were not the start of a trade war. They were a desperate effort to stop one before the U.S. is looted further by the Chinese."
